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Morgan Stanley recommend buying Cad/Jpy.......>

FOREX
FOREX: Morgan Stanley recommend buying Cad/Jpy this week. They note Japan's
fiscal year starts next week and expect to see Japanese investors allocating
more funds to buying foreign assets as bond volatility is unlikely to spike
significantly higher, and the volatility-adjusted yield advantage of a 10y UST
to 30y JGB has reached the highest since end-2016. This will weaken the JPY, as
the flows into US bonds are likely to be FX-unhedged due to the high hedging
costs from a rising 3m USD LIBOR. Morgan Stanley like to buy Cad/Jpy at market
with a target of Y84.50 and a stops of Y80.60.

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